On-demand Printing Faces Numerous Challenges. How Will Companies Under People's Publishing House Break Through And Succeed?

As a new model of deep integration of traditional printing and digital technology, print-on-demand effectively solves the pain points of traditional printing such as "minimum economic print number" limitation, inventory backlog, and timeliness lag, and has irreplaceable advantages in small-scale publishing, textbook replenishment, niche book printing and other scenarios. In recent years, on-demand printing has gradually become the core development direction of the printing industry with its flexible and efficient advantages. Although our country's print-on-demand field has great potential, it still faces multiple challenges such as cumbersome reprint management, cost fluctuation risks, and bottlenecks in enterprise operations.

As the core partner of the digital printing business of the People's Publishing House, Beijing Dongchang Cultural Center (hereinafter referred to as "Dongchang Culture") embodies the typical difficulties and breakthrough attempts of small and medium-sized on-demand digital printing enterprises in our country. This paper takes Dongchang Culture's digital printing business as the core case, systematically sorts out its current practices and optimization solutions in the field of on-demand printing, and combines excellent cases and successful experiences in the industry to deeply analyze the core problems that have not been solved at present, and put forward targeted solutions in the future. This study aims to provide practical reference for the sustainable development of digital printing enterprises in our country and promote the overall transformation and upgrading of the printing industry.

The development status and core problems of the print-on-demand industry

01

Industry development status

The core advantages of on-demand printing are reflected in three aspects: first, efficiency improvement, the production cycle of small batches of less than 500 volumes is shortened by 40%~60% compared with traditional printing; second, the cost is controllable, reducing warehousing and scrapping losses through the "zero inventory" model, and increasing the paper utilization rate by more than 25%; The third is green and low-carbon, with carbon emissions per unit output value reduced by about 30% compared with traditional printing, which meets the global "carbon neutrality" strategic needs.

At present, the annual installed capacity of global digital printing equipment has maintained growth for five consecutive years, and some cutting-edge publishing houses in our country have carried out on-demand digital printing exploration, but the overall industry is still in the development stage of "technological upgrading and prominent problems".

02

Common problems in the industry

(1) Insufficient adaptation of policies and management mechanisms

The traditional publishing management policy conflicts with the on-demand digital printing model, which is manifested in the cumbersome management of reprint editions. According to the requirements of the National Press and Publication Administration, each reprint of a book needs to report the number of prints, printing factory and other information and replace the copyright page, and the characteristics of on-demand digital printing "instant ordering, multiple batches of small batch reprinting" may lead to dozens of reprints and reports in a single day, making it extremely difficult for enterprises to operate and low administrative efficiency.

(2) There are stereotypes in industry cognition

Some practitioners, especially publishing house editors, are biased against the quality of digital print on demand. On the one hand, the single black text of the inkjet rotary printing machine has a sense of jagging, and the gap between color and digital proofing is greater than that of traditional four-color printing when printing in color; On the other hand, digital printing does not require sunboarding, no outlets, and lacks room for manual fine-tuning of colors, resulting in editors generally believing that its quality is inferior to traditional printing, restricting the promotion of technology.

(3) The risk of cost fluctuations is difficult to control

On-demand digital printing enterprises mostly adopt the "contract labor and materials" model, and the paper needs to meet the customized requirements such as static electricity and roll width, and the procurement cost is higher than that of traditional printing paper. In recent years, factors such as poor international slurry supply, rising prices of chemical auxiliary materials, and coal and electricity restrictions have led to a continuous rise in paper prices, while the adjustment of the labor price system of enterprises has lagged behind, directly squeezing profit margins and even causing losses.

There are problems and optimization plans in Dongchang culture

01

Problems in Dongchang culture

As a small and medium-sized printing enterprise relying on the orders of the People's Publishing House, Dongchang Culture's dilemma is not only common problems in the industry, but also has its own operational bottlenecks.

(1) Limited business scope: the business is completely dependent on a single customer, and the production capacity is idle when there is no major project support, and the profit in 2024 is -369,000 yuan;

(2) There are shortcomings in production capacity: there is a lack of hardcover digital book production capacity, which requires outsourcing processing, which cannot ensure the delivery timeliness and the risk of information leakage;

(3) Cost structure imbalance: the annual rent of equipment is 280,000 yuan, the salary and welfare of personnel are 711,000 yuan, the cost proportion is too high, and the income only depends on the printing volume of 12,000 copies/year, and the income and expenditure are seriously inverted.

02

Current operating practices

(1) The service model focuses on core customers

Dongchang Culture takes the People's Publishing House as the only core customer, implements "two-shift operation", 8:30~17:00 in the morning, 13:00~20:30 in the afternoon, relying on the geographical advantage of being close to the publishing house, to achieve "morning pick-up, afternoon delivery; Afternoon delivery, delivery the next morning", the delivery efficiency far exceeds the industry average.

(2) Build a closed environmental protection and confidential system

In response to the needs of publishing houses for confidential manuscripts, establish a closed and environmentally friendly mechanism for the whole process of typesetting, proofreading and proofing, and ensure zero leakage of manuscripts through the dual measures of physical isolation and network encryption, forming a differentiated competitive advantage.

(3) Passive response to cost control

In terms of cost management, the "equipment leasing + fixed personnel" model is adopted, and paper, ink and other consumables are purchased on demand, but in the face of rising paper prices, there is a lack of active response strategies, and only by maintaining the existing labor price system to barely maintain cooperation, resulting in aggravated losses.

03

Optimize solutions

In order to solve the operational dilemma, Dongchang Culture proposed a two-dimensional optimization plan of "personnel + equipment", which is as follows:

(1) Optimization of staffing

It is recommended to terminate the labor contracts of 3 employees and reduce wage and welfare expenditures by streamlining redundant positions; At the same time, strengthen the skills training of the remaining 3 employees to ensure that efficient delivery and service quality can still be maintained after the reduction, and balance "cost reduction" and "efficiency".

(2) Choose one of the four options for equipment configuration

(1) Purchase new equipment, budget 3.4 million yuan, paid in 8-year installments (annual payment of 425,000 yuan), meet high-quality printing standards, and replace rental costs in the long term, but short-term financial pressure is high, and it is difficult to make quick profits.

(2) Rent second-hand machines, with an annual rent of 200,000~250,000 yuan, which can achieve profitability after staff reduction to meet basic printing needs, but the stability of the equipment may be insufficient and the adaptability is limited.

(3) Purchase second-hand machines, budget 800,000 yuan, pay in installments of 3 years (annual payment of 270,000 yuan), set aside 100,000 yuan for maintenance fees per year, the cost is controllable, and the cost of renting second-hand mobile phones is the same as that of renting a second-hand mobile phone within 5 years, but it cannot be profitable in the short term, maintenance costs increase, and operational uncertainty.

(4) Eliminate the sector and cooperate, abolish the existing business, cooperate with 1~2 compliant digital printing enterprises in depth, divest loss-making business, retain reasonable profits, and ensure delivery demand, but lose core business autonomy and rely on the service quality of partners.

Starting from the current situation and core needs of Dongchang Culture's losses, the "renting second-hand machines" plan has the highest short-term feasibility, and can quickly achieve profitability through "staff reduction + rent reduction"; In the long run, if the qualification restrictions can be broken, "purchasing new equipment" can improve service quality and expand market space.

Excellent cases and successful experiences in the industry

01

Mature cases abroad

Taking Ingram as an example, its successful experience is reflected in three aspects: first, the technical system is mature, using high-speed inkjet equipment, output speed up to 150m/min, resolution 1200dpi, adapted to a variety of paper types; second, the service model is diversified, relying on the cloud platform to achieve the integration of "order reception-production-delivery", and supports global customers to place orders and track progress online; Third, policy coordination and efficiency, the government reduces enterprise operating costs and simplifies the reprinting and filing process through tax reductions and industrial park support. The service network covers 195 countries, connecting 38,000+ retailers and libraries, printing 1.2 million books per week in a single factory, processing thousands of orders in a single day, achieving "zero inventory" or "very low inventory" operations, and becoming a global benchmark for print-on-demand printing.

02

Domestic cutting-edge practice

As a leading publishing house in China, People's Publishing House has accumulated valuable experience in the exploration of on-demand printing: first, establish a "publishing house + printing enterprise" synergy mechanism, in-depth cooperation with Dongchang Culture and other enterprises, and eliminate inventory costs through the integrated model of "order reception-printing-delivery"; The second is to carry out editorial cognitive training, organize technical experts to explain the evolution of digital printing technology, such as variable data typesetting and color calibration technology, and inspect the production site to gradually break stereotypes. The third is to optimize the number of prints, combine historical sales data and market forecasts, calculate the optimal number of prints, and balance "small batch quick printing" and "cost control". Through these measures, the proportion of printed books on demand by the People's Publishing House has increased from 5% in 2019 to 11% in 2024, and inventory loss has been reduced by 12%.

Dongchang culture's unsolved problems and solutions

01

The core problem that Dongchang culture has not yet solved

(1) It is difficult to break through the qualification bottleneck: applying for a printing business license needs to meet multiple conditions such as venue, equipment, and personnel, which cannot be achieved in the short term, and the business scope is still limited to a single customer.

(2) Insufficient core competitiveness: Even if the "rental of second-hand machines" plan mentioned above is adopted to achieve short-term profitability, it still lacks hardcover production capacity and external market expansion capabilities, and relies on a single customer for a long time, which cannot expand the business well.

(3) Insufficient motivation for technological upgrading: In a state of loss, it is difficult for enterprises to invest in equipment upgrades and technology research and development, and the gap with leading enterprises in the industry may further widen.

02

Dongchang culture targeted strategy

(1) Step by step to break through qualification restrictions: cooperate with compliant printing enterprises in the short term to expand external orders with the help of the other party's qualifications; In the long run, integrate existing resources (venues, equipment, personnel) to gradually meet the application conditions for printing business licenses and achieve business autonomy.

(2) Optimize production capacity and service structure: Give priority to the "rent second-hand machines" solution to achieve profitability, and gradually invest in hardcover equipment research and development or outsourcing cooperation and upgrading (such as building confidential production lines with printing enterprises with hardcover production capacity) to solve production capacity shortcomings. ...

(3) Deepening Collaboration with Publishers: Negotiate with People's Publishing House to jointly establish a production base, with the publisher funding the purchase of high-end equipment and Dongchang Culture managing operations. Publisher needs will be prioritized, while idle periods can be used to handle external orders and share profits.

(4) Technology Upgrades and Talent Development: Cooperate with leading industry equipment suppliers to introduce printing technologies such as color calibration and automated binding to improve print quality; establish an internal training system to cultivate multi-skilled talents in both 'technical operations and customer service,' enhancing core competitiveness.

On-demand printing, as a core direction in the digital transformation of the printing industry, faces opportunities from technological upgrades as well as challenges from policy adaptation, cognitive bias, and cost fluctuations. Dongchang Culture's business practices deeply reflect the typical challenges faced by China's small and medium-sized on-demand digital printing companies. Its proposed 'streamlined personnel and optimized equipment' plan provides a short-term breakthrough path for similar enterprises, while industry best practices demonstrate that 'technological innovation, policy coordination, and win-win cooperation' are the key logic for long-term development.

In the future, by improving policy standards, establishing cost mechanisms, and deepening technological cooperation, China's on-demand digital printing industry may be promoted toward high-quality development. Dongchang Culture will also need to achieve a transition from 'loss-making operations' to 'sustainable profitability' while enhancing core competitiveness, providing a practical model for the development of the printing industry.